Factbook - hornbach-holding.de · Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 2 ... Sales split...

Factbook Q1 2018/19 ©HORNBACH Group 2018

FactbookQ1

2018/19


DIY retailer with three different business segments

157 megastores in 9 European countries and online shops focused on retail with DIY, garden and home improvement products for private and professional clients (HORNBACH Baumarkt AG subgroup)

29 builders’ merchant outlets in south-west Germany and France selling construction materials to professional clients (Hornbach Baustoff Union GmbH subgroup)

Retail property development for the operating units (Hornbach Immobilien AG subgroup)

50%44%

6% HORNBACH Baumarkt AG[Germany]

HORNBACH Baumarkt AG[International]

Hornbach Baustoff UnionGmbH

Sales split FY 2017/18

Stat

us: M

ay 3

1, 2

018


sales area:1,8 million sqm

store size: Ø 11,750 sqm

157 DIY megastores and garden centers across Europe

2 store openings in Zwolle (Netherlands) and Affoltern (Switzerland): +23,800 sqm

1 store closed (HORNBACH compact) in Alzey (Germany): -1,200 sqm)

Stat

us: M

ai 3

1, 2

018

27 x

2 x

Germany97 stores

1,051,200 sqm

Netherlands14 stores

176,500 sqm

Luxembourg1 store

12,100 sqm

Switzerland7 stores

90,000 sqm

Austria14 stores

168,900 sqm

Sweden5 stores

72,900 sqm

Czech Republic10 stores

140,900 sqm

Slovakia3 stores

46,100 sqm

Romania6 stores

86,400 sqmZwolleMar 14, 2018

Alzey,Apr 28, .2018

AffolternMay 26, 2018

Q1 2018/19


cHORNBACH

Baustoff Union GmbH3)

Neustadt/WeinstraßeNot listed

HORNBACH Immobilien AG3)

BornheimNot listed

HORNBACH Baumarkt AG3)

BornheimListed Ordinary Shares²)

(ISIN DE0006084403)

76.4% 100%100%

Free Float Hornbach Familien Treuhand GmbH

HORNBACH Management AG

(General Partner)

Management

100%

HORNBACH Holding AG & Co. KGaANeustadt/Weinstraße

Listed Ordinary Shares1)

(ISIN DE0006083405)

Free Float

23.6%

62.5% 37.5%

Two publicly listed corporationsSi

nce

Mar

ch 2

8, 2

017

1) Number of shares: 16,000,000 / Stock market code: HBH

2) Number of shares: 31,807,000 / Stock market code: HBM

3) plus other subsidiary companiesin Germany and abroad


Our Key Success Factors

Own real estate portfolio and efficient logistics network

Publicly listedfamily company

Highest productivity per sqm in the German DIY sector

Leading in DIY online retail

Focus on B2C and B2B clients with large DIY projects

Organic growth above sector average

Consistent interconnected retail strategy

High customer satisfaction across Europe

Own brands with added value

https://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjdhJa1oKLXAhUGvxQKHemZDoUQjRwIBw&url=https://www.iconfinder.com/icons/115720/like_thumbs_thumbs_up_up_vote_icon&psig=AOvVaw2iPV7VJ4esaLXNVvYRx4_Y&ust=1509793253915273

https://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi6zvz5n6LXAhUL2RoKHerRC3AQjRwIBw&url=https://thenounproject.com/term/online-shopping/776781/&psig=AOvVaw2rah2BUSh4C__-JjBx_1Dx&ust=1509793155302281

https://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj2qu3fy6nXAhXHtxQKHdKFDgoQjRwIBw&url=https://thenounproject.com/term/productivity/217421/&psig=AOvVaw3uHF1sA7Cur77UNVZx5OAn&ust=1510045431268096

http://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjEmajMn6LXAhUBBBoKHUAyDWEQjRwIBw&url=http://freevector.co/tag/line/page/6/&psig=AOvVaw1frN7cfAo-pJxPIGeA7_tD&ust=1509793060534057


From a small craftsman business to a European DIY Group

1877Foundation of handicraft business

1968

1st DIY store with garden center Bornheim

19801st DIY megastore Karlsruhe

1987Going public HORNBACH Holding AG

1996-2007

Expansion Austria (1996), Netherlands (1997), Czech Republic (1998), Switzerland (2002), Sweden (2003), Slowakia(2004), Romania (2007)

2010Start online shop Germany

1993Going public HORNBACH Baumarkt AG

2013

Change in legal form of HORNBACH Holding AG in „KGaA“

2013-2018

Roll-out international online shopsAustria (2013), Switzerland (2014), Netherlands, Czech Republic,

Luxemburg (2015), Slowakia, Sweden (2017), Romania (2018)

20031st DIY store with drive-through

Emission Eurobond (3,875%)

2015


Project DIY store for DIY fans and professionals

Broad and deep product range

More than 50,000 articles stocked in sufficient quantities at store

Extended product range at online shop

Permanent low prices rather than discount campaigns

Price leadership online and at stores

Price guarantee

Competent advice and services for all aspects of DIY projects

IHK-certified advisors with planning and project competence

Tradesman service, rental service, financing, repairs…

Support for professionals and Proficard

Key focus on project customers tackling major DIY projects


Consistent multichannel strategy

Online shop as catalyst for permanent low price strategy and price perceptions

Shop with or without contact to store:

Reserve & collect at store

Direct delivery to home / building site

Delivery to store

Additional services:

Product availability and location within store

Central customer service center

Planning tools for DIY projects / configurators, online paint mix service etc.

International rollout of online shop in all countries where HORNBACH operates

Every day low priceOnline and in the store


Private labels offer added value

Private labels differentiate us from competitors and help boost customer retention

Lower dependence on manufacturers’ brands in terms of innovations and quality (specification, certifications, auditing)

Full control over brand launch and positioning

Ability to actively manage product lifecycle

Significantly higher gross margins while offering very good value for money

No direct price competition

Share of sales planned to grow from 23.4% (2017/18) to 30%


43

45

53

11 4

Property HI Property HBM

Operating Leases Finance Lease

Others

FY 2017/18(€ million)

Book value

Yield value(x13)

Hidden reserves

(x13)

Baumarkt Subgroup

611 917 306

Immobilien Subgroup

418 793 375

HORNBACH Group 1,029 1,710 681

Sales area in %No. of stores

Stat

us: F

ebru

ary2

8, 2

018

Property ownership and hidden reserves

28%

29%

33%

8%2%

Hidden reserves in real estate assets*

*based on our own assumptions and calculations


Focus on big catchment areas Large store format: 85% of stores > 10.000 sqm

Homogeneous store network: Economies of scale in store operation and store development

Meets customers needs and provides superior shopping experience

Selling Space(BHB weighted)

CapEx1)

8,500 – 10,999 sqmincl. drive through

15 – 20 € million

11,000 – 14,999 sqm 20 – 25 € million

≥ 15.000 sqmincl. drive through

25 – 30 € million

1) average CapEx for property and building

HORNBACH4

HORNBACH5

HORNBACH6

Investment in prime locations


Logistics network for store deliveries

Soltau (56,000 sqm)2012 Central WH 2017 Extension

Lehrte (55,000 sqm)1994 Regional WH1999 Extension cross-docking 2011 Extension regional WH

Berlin (5,200 sqm)2015 Cross-docking

Castrop-Rauxel (11,400 sqm)2015 Cross-docking

Lorsch (24,700 sqm)2015 Regional WH & Cross Docking

Essingen (26,900 sqm)1999 Regional WH & Cross Docking

Vilshofen (30,300 sqm)2005 Regional WH & Cross Docking 2018 Extension Cross Docking

Enzersdorf a/d Fischa (5,200 sqm)2018 Cross-docking bulk

8 logistics sites

150,000 storage spaces

215,000 sqm warehouse space


Logistics to customersHORNBACH Baumarkt Subgroup

Click and Collect in store

Pick-up of online orders in store

Direct delivery

Fulfillment Partner

HORNBACH Delivery Center

Pick-up store Delivery

Online sales: 3 delivery optionsThe store as a partner for e-commerce

HORNBACHDVZ

Fulfillment Centre

SupplierDV



Sustainable success


HORNBACH Baumarkt [Germany] HORNBACH Baumarkt [International] Hornbach Baustoff Union

FY 1987/88: 613 employees€ 132 million net sales

* incl. passive employees

Organic GrowthHORNBACH Group

44%

50%

6%

FY 2017/18: 19,614 employees* € 4.14 bn net sales (CAGR ~12% / 30 years)



22.4

45.7

16.2

7.1

DIY stores Specialist retailers Small scale formats Total DIY core market

Volume of the German Core DIY Market in 2017(total sales including online sales)

thereof online:~ 600 € million

Gros

ssa

les

in €

bill

ion

online total:~ 1.2 € billion



[Source: BHB, GfK, IFH , Teipel Retail & Consulting, HORNBACH]


1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1998

= 1

00%

DIY sector (GER) HORNBACH (GER)

Performance and market share in GermanyHORNBACH Baumarkt Subgroup

Like-for-like salesgrowth in Germany

[Source: BHB/GfK DIY-Panel (until 2013), GfK DIY-TSR (since 2014), HORNBACH]

+36%

-11%

1998:

5% Market share in Germany

2017:

11% Market share in Germany



9.5

20.0

24.9

4.86.9

16.2

OBI Bauhaus HORNBACH Zeus/Hagebau Toom/B1 Globus/Hela

6,2115,452

3,891

2,610 2,2701,471

OBI Bauhaus HORNBACH ZEUS/Hagebau Toom/B1 Globus/Hela

… but growth faster than its competitors

… and is #1 in sales per store (€ million) … and sales per sqm (€)

1,274

1,698

2,135

1,108 1,053

1,857

OBI Bauhaus HORNBACH Zeus/Hagebau Toom/B1 Globus/Hela

HORNBACH ranks #3 among German DIY Retailers (2017)HORNBACH Baumarkt AG

Net s

ales

(Eur

ope)

in €

mill

ion;

gro

wth

in %

[Source: Dähne, HORNBACH]

+4.9%+1.4% +1.4% +2.9% +1.5% +0.1%



Bubble size = Net sales (Europe)

0

2000

4000

6000

8000

10000

12000

14000

750 1000 1250 1500 1750 2000 2250

aver

age

stor

e si

ze (i

n sq

m)

Net sales / sqm

OBI

Bauhaus

HORNBACH

Toom

Globus/Hela

Zeus/Hagebau

Eurobaustoff

EMV-Profi

Hellweg

[Source: Dähne, HORNBACH]

Megastore

Average store size, net sales and sales densities (2017): HORNBACH Baumarkt Subgroup



DIY multichannel retail in all regionsHORNBACH Baumarkt Subgroup

Germanysince December 2010157,000 items

Luxemburg (only C&C)since December 201597,000 items

Netherlandssince March 201570,000 items

Switzerlandsince November 2014113,000 items

Swedensince October 201730,000 items

Czech Republicsince December 201544,000 items

Austriasince January 2013113,000 items

Slovakiasince August 201732,000 items

Romaniasince January 201834,000 items

Stat

us: A

pril

28, 2

018

2010 2013 2014 2015 2017 2018

Direct delivery (no store contact) Order/ delivery via store Click & Collect (C&C)

DIY multichannel retail is based on three pillars:



Highly satisfied customers across EuropeHORNBACH Baumarkt Subgroup

#1/#2 Product range, selection, offering in Germany, Switzerland, Austria, Netherlands, Czech Republic, Sweden

#1 Product quality in Germany, Switzerland, Netherlands, Sweden

#1/#2 Pricing in Germany, Austria, Switzerland, Netherlands, Czech Republic

#1/#2 Specialist advicein Germany, Switzerland, Netherlands, Czech Republic, Sweden

Sources: Kundenmonitor Germany/Austria/Switzerland, GfK (Czech Republic), ING Retail Jaarprijs(Netherlands), Svenskt Kvalitetsindex/evimetrix (Sweden)

(Statements based on studies in Germany, Switzerland, Austria, Netherlands, Czech Republic, Sweden. No information collected for Romania, Slovakia, Luxembourg)

https://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjdhJa1oKLXAhUGvxQKHemZDoUQjRwIBw&url=https://www.iconfinder.com/icons/115720/like_thumbs_thumbs_up_up_vote_icon&psig=AOvVaw2iPV7VJ4esaLXNVvYRx4_Y&ust=1509793253915273


Homing(Consumers‘ living trends)

New target groups(women, do-it-for-me, seniors)

Increasing needfor renovation and

modernization(80% of houses/flats > 30 years)

Energy efficiency (Lower lifecycle cost, CO2 reduction)

International expansion

Barrier-free living(ageing of the population)

Online retailing(Growing share of DIY e-commerce,

Omni-Channel and the death of pure play))

Opportunities and Growth Drivers in the DIY MarketHORNBACH Group

Consumer trendsSustainability


Financial Year 2017/18


Highlights of 2017/18 financial yearHORNBACH Group

Pleasing like-for-like sales growth + 3.6 %; international + 6.1 %, Germany + 1.5 %

New store openings in The Hague and Halle

Online shop launched in Slovakia, Sweden and Romania

Further expansion in multichannel retail approach

Consolidated operating earnings (EBIT) and consolidated net income both up on previous year

Stable dividends

Strong balance sheet with high equity ratio (54.8 %)


216 213 218 229 248

1325 13901524

16701820

18271966

20112040

2071

2013/14 2014/15 2015/16 2016/17 2017/18

Hornbach Baustoff Union HORNBACH Baumarkt AG [International] HORNBACH Baumarkt AG [Germany]

3,3693,572 3,755

3,941

Sustainable Sales GrowthHORNBACH Group

€ m

illio

n

Rounding differences

4,141

+9.0%

+1.5%

+5.1%

+8.3%


Like-for-like Sales*HORNBACH Baumarkt Subgroup

* In constant currencies

GJ2016/17

Q 12017/18

Q 2 2017/18

H 1 2017/18

Q 32017/18

9 M2017/18

GJ2017/18

Total 3.0 5.4 2.6 4.0 2.7 3.6 3.6

Previous year 2.6 4.4 4.5 4.5 3.0 4.0 3.0

Germany 1.4 3.8 0.3 2.1 0.5 1.6 1.5

Previous year 0.8 2.7 2.2 2.5 2.2 2.4 1.4

International 5.1 7.5 5.3 6.4 5.4 6.1 6.1

Previous year 4.9 6.6 7.7 7.1 3.9 6.1 5.1


156,8 161,2159,8 165,6

2016/17 2017/18

EBIT Adjusted EBIT

97,5102,5102,8

110,0

2016/17 2017/18

EBIT Adjusted EBIT

EBIT* and adjusted EBIT

4.0% 2.6%3.9% 2.6%

HORNBACH Group HORNBACH Baumarkt Subgroup

+3,7% +7,0%

EBITmargin

EBITmargin

+2,8%

AdjustedEBIT margin 4.0%4.1% Adjusted

EBIT margin

+5,1%

2.8%2.8%

*based on International Financial Reporting Standards (IFRS)


79 81

53 59

2016/17 2017/18

Earnings before taxes Group net income

130 132

90 96

2016/17 2017/18

Earnings before taxes Group net income

Earnings before taxes and Group net income

2.3% 1.4%2.3% 1.5%

HORNBACH Holding Group HORNBACH Baumarkt Subgroup

27.5%33.3%27.2%30.9%

Group net income in % of net sales

Group net incomein % of net sales

tax ratiotax ratio


2016/17 2017/18

HORNBACH Immobilien

HORNBACH Baustoff Union

HORNBACH Baumarkt

87 %

2016/17 2017/18

Intangible assets

Administration

Existing stores

New stores

CAPEX 2017/18HORNBACH Group

Olomouc

179

148

€ m

illio

n

179

148

55 %

34 %


1,667 1,704

791 800

190 164

February 28, 2017 February 28, 2018

1,463 1,398

693 724

512 526


Group Balance Sheet Structure (IFRS) HORNBACH Group

Liquid funds

Non-current assets Shareholders‘ equity

Current liabilities

Non-current liabilities

rounding differences

Inventories, accountsreceivable and other

assets

2,648 2,668

54.8%

2,6482,668TotalAssets

Total Equityand liabilities

52.8%


1,132 1,173

715 722

113 102


1,049 1,011

496 503

453 446


Group Balance Sheet Structure (IFRS) HORNBACH Baumarkt Subgroup

1,960 1,998

52.5%

1,9601,998

51.6%

TotalAssets


Liquid funds


Current liabilities



assets

rounding differences


Employees*HORNBACH Group

11,109 11,380

7,726 8,234


Germany International

19,61418,835

* incl. passive employees


10,309 10,520

7,693 8,201



18,72118,002


Q1 2018/19


Highlights Q1 2018/19HORNBACH Group

Group sales +2.7 %

Like-for-like sales growth (DIY) of + 2.3 % despite unfavourableseasonal effects in spring

International +5.2 %

Germany -0.2 %

Store openings in Zwolle (NL) und Affoltern (CH) support international growth

EBIT and group net income below previous year‘s level as expected

Strong balance sheet with high equity ratio (53.7 %)

Full year revenue and earnings outlook confirmed


58 56 57 65 65

402 420467

517 549

575 576592

613 613

2014/15 2015/16 2016/17 2017/18 2018/19

Hornbach Baustoff Union HORNBACH Baumarkt AG [International] HORNBACH Baumarkt AG [Germany]

1,035 1,052 1,1161,196

Sales Growth Q1HORNBACH Group


1,227

€ m

illio

n

+6.3%

+2.7%

-0.1%

0.0%


Like-for-Like Sales*HORNBACH Baumarkt Subgroup

3.8

0.3 0.50.9

-0.2

7.5

5.3 5.46.2

5.2

Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19


+5.4% +2.6% +2.7% +3.3% +2.3%

* In constant currencies


38.2

76.8 76.5

92.7

79.3

2014/15 2015/16 2016/17 2017/18 2018/19

EBIT Q1HORNBACH Group


-14.5%

Q1 2018/19

€ m

illio

n

77.6

1.5

14.3

65.2

0.9

14.1

HBM HBU HI

2017/18

2018/19

HBM: HORNBACH Baumarkt SubgroupHBU: HORNBACH Baustoff Union GmbHHI: HORNBACH Immobilien AG


EBIT Q1HORNBACH Baumarkt Subgroup


-15.9%

Q1 2018/19

€ m

illio

n

73.365.2

61.5

77.6

65.2

2014/15 2015/16 2016/17 2017/18 2018/19

64.2

19.1

48.2

20.7

Retail Real estate

2017/18 2018/19


Cash Flow Statement

Q1 2017/18 Q1 2018/19 Q1 2017/18 Q1 2018/19

Cash flow from operating activities 125.2 135.0 115.3 124.3

of which: funds from operations 91.0 77,6 77.4 64.2

of which: change in working capital 34.2 57,4 38.0 60.1

Cash flow from investing activities -22.0 -68.8 -20.3 -64.3

Short-term investments 10.0 0.0 10.0 0.0

Cash flow from financing activities -36.9 -5.4 -15.2 -0.2

Cash-effective change in cash and cash equivalents 76.2 60.8 89.8 59.8

Change in cash and cash equivalents due tochanges in exchange rates -0.4 -0.1 -0.3 -0.1

Cash and cash equivalents at March 1 190.1 164.1 113.0 102.1

Cash and cash equivalents at May 31 265.9 224.7 202.5 161.8



€ m

illio

n


1,704 1,744

800 855

164225

February 28, 2018 May 31, 2018

1,516 1,463

686 693

621512

May 31, 2018 February 28, 2018

Group Balance Sheet Structure (IFRS) HORNBACH Group

Liquid funds


Current liabilities




assets

2,668 2,824

53.7%

2,6682,824TotalAssets


54.8%


1,173 1,215

722 774

102162

February 28, 2018 May 31, 2018

1,094 1,049

495 496

562453

May 31, 2018 February 28, 2018

Group Balance Sheet Structure (IFRS) HORNBACH Baumarkt Subgroup

1,998 2,151

50.9%

1,9982,151

52.5%

TotalAssets


Liquid funds


Current liabilities



assets



Outlook FY 2018/19


New Store Openings and Outlook 2018/19

Sales and earnings forecastHORNBACH Group for FY 2018/19

HORNBACH Group

HORNBACHBaumarkt Subgroup

Sales 2018/19 Sales to increase in a medium single-digit percentage range

Sales 2017/18 4,141 € million 3,891 € million

Adjusted EBIT 2018/19

On previous year‘s level

Adjusted EBIT 2017/18

166 € million 110 € milion

Capex 2018/19 160-180 € million 150-170 € million

Capex 2017/18 148 € million 129 € million

Boras (Q3)

Zwolle (Q1 - opened)

Affoltern (Q1 - opened)


June 22, 2018 Financial Update: 1st Quarter of 2018/19as of May 31, 2018

July 5, 2018 Annual General Meeting HORNBACH Baumarkt

July 6, 2018 Annual General Meeting HORNBACH Holding

September 27, 2018 Half-Year Financial Report 2018/19as of August 31, 2018DVFA Analysts‘ Conference HORNBACH Holding

December 20, 2018 Financial Update: 3rd Quarter of 2018/19as of November 30, 2018

DISCLAIMERThis presentation is to be read in the context of the audited financial data of the HORNBACH Holding Group and the disclosures made in the notes to the consolidatedfinancial statements contained in the annual report. It contains statements relating to the future based on assumptions and estimates made by HORNBACH’s Boardof Management. Forward-looking statements are only valid at the time at which they are made. Although we assume that the expectations reflected in these forecaststatements are realistic, the company can provide no guarantee that these expectations will turn out to be accurate. The assumptions may involve risks anduncertainties which could result in actual events differing significantly from the forecast statements. Such factors include those discussed in the “Risk Report” and“Outlook” of the annual report. We do not assume any obligation to update the forward-looking statements contained in this presentation.

Financial Calendar 2018HORNBACH Group

Factbook - hornbach-holding.de · Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 2 ... Sales split...

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Transcript of Factbook - hornbach-holding.de · Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 2 ... Sales split...